Scientific Games Corp. reported losses for Q4 and the entire year of 2020, but officials are optimistic because the results were better than projected amid the Covid-19 pandemic.
The company reported a net loss of $84 million, or 95 cents per share, for the quarter ended December 31, compared with a net loss of $37 million on 46 cents per share for the same quarter a year earlier. For the year, the company had a net loss of $548 million, or $6.02 per share, compared with a loss of $118 million, or $1.40 per share, a year earlier. Full-year EBTIDA fell 47 percent to $800 million from $1.3 billion.
Adjusted earnings before interest, taxes, depreciation and amortization fell 37.1 percent to $244 million from $388 million. Scientific Games said a $15 million gaming-segment charge related to receivables credit allowances hurt the result.
However, revenue in Scientific Games’ lottery was up 10 percent to $256 million, and the digital division also rose slightly to $73 million for the fourth quarter.
“While 2020 certainly had unforeseen challenges, I couldn’t be more proud of our team for successfully navigating through them,” Scientific Games CEO Barry Cottle said in a statement.
“The strong execution coupled with the diversity of our business enabled positive cash flow. As we start off the year, I am truly excited about the team, products and game franchises that should enable share gains, deal wins, and opportunities to enter new genres. The executive team and our board are working purposefully to transform our company, capitalize on the evolving industry trends and deliver outsized returns to our shareholders.”
“I’m confident in the opportunities for operational and business process improvements that will drive increased cash flow conversion and deleveraging, leading to increased stakeholder value,” added Chief Financial Officer Michael Eklund. “We continued to execute, having driven cash flow improvements in the fourth quarter despite a number of Covid-19-related restrictions to our land-based business. The focus remains on disciplined cost and balance sheet management.”
Union Gaming analyst John DeCree wrote in an investor note that the company is “seeing early signs of success in gaming turnaround and is likely to build on its recent performance to boost market share, sales volumes and higher win per day.”
DeCree noted the successful launch of the Kascada cabinet, the first under the new leadership team and strategy, which is performing at 2.5- times zone average. This will be followed up by the new Mural cabinet later this year.
“SGMS also ranked No. 1 in both new premium content with 36 percent share and for-sale-content with 23 percent share in the latest slot surveys,” he wrote.